Moving to expand its cloud-based enterprise imaging portfolio and its presence in outpatient and ambulatory care settings, GE HealthCare has agreed to purchase imaging informatics software developer Intelerad for $2.3 billion in cash.
In announcing the deal, GE HealthCare highlighted Intelerad’s AI and workflow orchestration software, cloud PACS, and image sharing capabilities -- all provided to customers in a software-as-a-service (SaaS) model. It was also drawn to Intelerad’s position in the outpatient sector, enabling GE HealthCare to offer a cloud-based portfolio that encompasses outpatient and ambulatory, teleradiology, and hospital settings.
The acquisition will bring to a close Intelerad’s longstanding presence as a private image management software developer. Founded in 1999 in Montreal, Intelerad has carved out a niche in the outpatient imaging market and counts over 1,500 healthcare organizations worldwide among its customers, according to the vendors.
The deal comes as hospital and ambulatory care providers seek to simplify and unify their workflows due to increased demand for imaging and rising patient volumes, said GE HealthCare President and CEO Peter Arduini.
"Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions in radiology and cardiology into our portfolio of products and extend our capabilities into outpatient networks, enabling care teams to be more efficient, improve outcomes, and deliver precision care for patients globally,” Arduini said in a statement from GE HealthCare. “As a result, we expect to accelerate our growth in SaaS products and recurring revenues as we take another evolutionary step to grow into a healthcare solutions provider.”
The deal also supports GE HealthCare’s goal of tripling its cloud offerings by 2028.
GE HealthCare projects that Intelerad will generate approximately $270 million in revenues in the first full year of its ownership. Of that revenue, approximately 90% is recurring, according to the vendor.
It also estimates that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin will be over 30%. Intelerad’s revenue is currently growing in the low-double-digit range each year.
The deal is expected to be completed in the first half of 2026, subject to customary closing conditions and regulatory approvals. GE HealthCare said it intends to fund the transaction with cash on hand and proceeds from debt financing.
After closure, the transaction is expected to be immediately accretive to revenue growth and adjusted earnings before interest and taxes (EBIT), according to GE HealthCare. The company anticipates that the transaction will be dilutive to adjusted earnings per share. However, it plans to offset this with cost efficiencies and achieve a high-single-digit return on invested capital by year five.
